TAXES

Income tax returns

The French government uses a system of withholding taxation known as Prélèvement à la source (PAS). Income earned from January of any given year is taxed at source on a monthly basis. Your tax rate is determined by the French tax administration based on your two previous years’ income and amount of tax paid, or a neutral tax rate is applied for newcomers with no previous record.

All employers based in or outside France withhold income tax on their employees’ salary income.  They declare the amount of income tax withheld and each month, and transfer these amounts to the French tax administration.

Tax declarations are generally due in June. The following August, taxpayers receive a tax assessment which indicates if they have a balance to pay or if they are eligible to receive a refund of overpaid tax.

For further information, visit the English pages at the French Inland Revenue website.

You can also contact the ILL Personnel Administration and Payroll group:  ILL 4 - Office 021 or 022 -  Tel: 0476 20 71 06

Your first tax return

First-time filers may submit a paper tax return using forms downloaded from an official website. The declaration should be sent in the post by registered mail (lettre recommandé avec accuse de reception – LRAR, or a letter with notification upon delivery). Your declaration can also be hand delivered, but you must ask for proof of delivery.

Forms should be sent to the tax centre of your city or residence.

Download forms for your first tax return at https://www.impots.gouv.fr/accueil

Subsequent tax returns

Once you have already filed a tax return in France, your declaration must be made online using an account that you set up on the official website www.impots.gouv.fr.

LEAVING FRANCE

You will need to notify your tax centre when you leave France in a standard letter indicating a reliable address in your new host country, or family or friends in France or elsewhere. You will still need to file a tax return in May of the following year.  The tax authority will send you a tax assessment indicating whether a balance is due to be paid or if you are eligible to receive a refund of overpaid taxes.

After your departure, you will need to write a letter explaining that your tax liabilities have been fulfilled after your last payment. If you are no longer receiving income from France, you tax file will remain dormant until you come back to France.  If you continue to receive income from French sources, you tax file will be sent to SIPNR, a tax service for non-residents.

Local taxes: Property taxes and rates

Anyone owning a property on 1 January must pay the taxe foncière. If the property is owner-occupied, the owner will pay a taxe d’habitation.

You do not need to contact the tax office. Your tax office will send you a form based on the information contained in your income tax return. The amount of tax payable depends on the type and size of the property you live in and where it is located.

For further information, visit the French Inland Revenue website.

You can also contact the ILL's Personnel Administration and Payroll group (ILL 4 - Office 021 or 022 -  Tel: 0476 20 71 06) for more information.